You indicated that it is now free and clear.
So if your property value is $200,000 the most you can pull out is $150,000 (less any lien that has to be paid off) if it is a house, or $140,000 if it is 2 to 4 units.
If it is 5 or more units. It is a whole nother ballgame.
You can get 90% to 100% of the value out if you sell it. First, get a estimate of value and marketing plan from one of the Realtors that responded to your post. Your best prospect to buy it if it is a single family house is the tenant that is living there now.
Because you own it free and clear, you could sell it with owner financing, take a large down payment for the cash you need, then take payments that are the same size as the monthly rent you are currently earning, without having to shoulder the insurance, maintenance, property tax, and utility bill that you currently carry.
These are just random ideas, may not fit your personal situation. But it is okay to consider alternatives before you commit to the equity loan.
There are a few lenders that provide HELOCs for rental properties.
It is going to be full doc though, so income verification, 1040s etc. are required.
Let me know if you need the details.
916 230 5250
RE/MAX Active Realty.
Short Sale And Foreclosure Resource
Phone: (510) 676-4770